PRIA Logo™
119-hr-5728119th CongressWALLET

Rural Homeownership Continuity Act of 2025

Sponsored By: Representative Costa, Jim [D-CA-21]

Introduced

Summary

Authorizes qualified individuals to assume existing USDA Section 502 guaranteed home loans when the property is transferred to them. This bill would let a person who meets Section 502 eligibility take over a guaranteed loan tied to a transferred home instead of requiring a new loan.

Show full summary
  • Families and current borrowers: If the borrower transfers the property to the person who assumes the loan, the transferor and any co-borrower or guarantor would be relieved of liability on that guaranteed loan.
  • New owners who qualify: The transferee could assume the obligations, rights, and interests of the original guaranteed loan or accept other terms the Secretary of Agriculture sets.
  • Loan servicers: The Secretary may issue a rule allowing servicers of Section 502 guaranteed loans to charge borrowers fees for transaction costs.
  • Scope: The change would apply to loans guaranteed under Section 502 of the Housing Act of 1949 on or after enactment.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 1 costs, 1 mixed.

Qualified buyers could assume USDA home loans

If enacted, qualified buyers could take over a current USDA-guaranteed rural home loan when the home is transferred to them. The seller and any co-borrower or guarantor would be released from liability once the loan is assumed. USDA would set the assumption terms, which could match the loan’s terms or use other terms. This would apply only to loans guaranteed on or after the date this bill becomes law.

Possible new fees on USDA home loans

If the Secretary of Agriculture issues a rule, servicers could charge borrowers fees for transaction costs on USDA Section 502 home loans. You would only pay these if you have a Section 502 guaranteed loan and the rule is in place. The bill does not set the fee amounts.

Sponsors & CoSponsors

Sponsor

Costa, Jim [D-CA-21]

CA • D

Cosponsors

  • Rep. Bacon, Don [R-NE-2]

    NE • R

    Sponsored 10/10/2025

  • Rep. LaMalfa, Doug [R-CA-1]

    CA • R

    Sponsored 10/10/2025

  • Rep. Balint, Becca [D-VT-At Large]

    VT • D

    Sponsored 10/10/2025

  • Rep. Sherman, Brad [D-CA-32]

    CA • D

    Sponsored 10/10/2025

  • Rep. Salinas, Andrea [D-OR-6]

    OR • D

    Sponsored 10/10/2025

  • Rep. Pettersen, Brittany [D-CO-7]

    CO • D

    Sponsored 10/10/2025

  • Rep. Beatty, Joyce [D-OH-3]

    OH • D

    Sponsored 10/10/2025

  • Rep. Valadao, David G. [R-CA-22]

    CA • R

    Sponsored 10/10/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation